UK reprimanded over 'zero-hour' contracts

Zero-hour contracts are breaking new records, the British Office for National Statistics revealed last week, prompting calls by the European Commission to offer better social protections for those covered by the controversial employment agreement.

At 1.4 million, zero-hour contracts are three times more widespread in the UK than previously reported. These contracts, typical for the British labour market, tie employees to their jobs without any obligation for the employer to guarantee a minimum number of paid hours.

The European Commission told EurActiv, “It is important that people on zero-hours contracts do not become trapped in a succession of short-term, low quality jobs with inadequate social protection.”

It added, “The UK has an obligation to ensure compliance with the working conditions standards set by EU labour law, including paid annual leave proportionate to time worked and respect for the Working Time Directive.”

According to a report in The Guardian newspaper, workers refusing to take on such contracts are now also at risk of losing their right to social benefits. Data also revealed that women, elderly and young people are the most frequent targets of zero-hour contracts, prompting the Labour party to accuse the Conservative-led government of encouraging them.

Turning to the EU

Outgoing British MEP Stephen Hughes, a former chair of the European Parliament’s employment and social affairs committee, said “It is time to act at EU level”. He advised the upcoming Parliament to seize the opportunity when the next commissioner in charge of employment comes before them for a confirmation hearing in September.

“The hearings with the European Commission must be an opportunity to put well-thought questions, pin the future commissioner down and get an answer,” he said.

For the Trade Unions Congress (TUC) EU-level action needs to be more concrete. Elena Crasta, senior policy officer at the TUC, said the commission should “tighten up the employment directives by closing loopholes at the source.”

In the UK, she said, employees have a much stronger social protection than other types of workers. But the UK tends to restrict the scope of application of EU employment legislation to employee-status only when time for implementation comes, leaving a large number of workers including the disposable ‘zero-hour’ ones, out of reach.

Commenting on the commission’s reaction to the increase of precarious contracts in the UK, Crasta said that it is, “important that the working time directive applies to all workers and not only employees.”

For older cases, she said, the Commission could also look into the way such directives have been implemented so far and “take the UK to court”.

Unsustainable recovery

Crasta stressed that even new-comers in Eastern European countries have a higher level of social protection for workers “because they had to implement [EU law] while the UK kept on negotiating opt-outs and derogations.”

“For the temporary agency workers directive, the UK has negotiated two opt-outs that it is using and even abusing,” she adds, slamming arguments that that kind of flexibility is what has helped UK show signs of economic recovery in the wake of the crisis.

In the TUC’s opinion, such recovery is not only unsustainable. It is doomed to repeat the mistakes of the past.

“If those on precarious contracts were offered the possibility to have decent contracts, they’d be better paid and the internal demand would grow. In the UK, consumption relies on personal indebtedness, like it was before the crisis, and the housing prices grow faster than wages, therefore creating the premises for another bubble.”

For unionists, announced austerity measures until 2018 will further undermine any opportunity for sustainable recovery.

Upwards convergence

“This European Commission has been disappointing; it did not make many proposals on social issues such as the widespread precarious employment relationships, which were partly accelerated by the economic crisis. The commission has a competence at least in ensuring a level-playing field and preventing competition between countries on their level of social protection. Convergence needs to happen but it needs to go upwards”, she said.

Although zero-hour contracts are typical for the British labour market, similar bogus self-employment statuses can be found elsewhere, Crasta said, notably in Italy. She said that proves “there is scope for the European Commission to intervene”.

“The same level of precarity can be found in Italy with 'on call workers' who are not granted proper working contracts. They appear as self-employed but are not treated as long-term employees. Because they only have one source of income, they are entirely dependent on one employer.”

In the UK, zero-hour contracts are mostly found in hotels and restaurants but also in the health and the education sector, data has shown.

Background

A zero-hour contract is an employment contract used in the United Kingdom.

While meeting the terms of the Employment Rights Act 1996 by providing a written statement of the terms and conditions of employment, it contains provisions which create an "on call" arrangement between employer and employee.

It does not oblige the employer to provide work for the employee. The employee agrees to be available for work as and when required.

No particular number of hours or times of work are specified. The employee is expected to be on call and receives compensation only for hours worked.

Positions

A spokesman for British Prime Minister David Cameron defended plans to cut down social benefits for jobseekers turning down zero-hours contracts. He said: "Individual decisions about tailored work requirements for people who are in receipt of taxpayer-funded benefits are taken on a case-by-case basis by jobcentre staff. But as a point of principle, should we be expecting people to seek employment in return for benefits, and do we have a system, in the universal credit, that is designed to respond to changing earnings? He does think that's the right approach."

Related Content

British trade unions and activists are launching a nationwide campaign to raise awareness against the “dangers” of the planned Transatlantic Trade and Investment Partnership (TTIP) for the public health sector.

Insiders at the EU Commission said that interior ministers meeting in Brussels next week (5 December) will not form a united front with David Cameron against free movement of workers as they are too divided on the issue.

As the EU slowly emerges from the economic crisis, the European Commission is increasingly focusing on the impact the recession has caused to workers across the bloc, a situation for which the Belgian labour minister might “have some answers”.

Britain's continued membership of the European Union is contingent upon it being allowed to stop migrants from the bloc tapping into its relatively generous welfare system, Prime Minister David Cameron will warn today (28 November).

British Prime Minister David Cameron pledged yesterday (25 March) to investigate why a senior Conservative party fundraiser offered exclusive access to him in return for donations of £250,000 (€300,000) a year.

British Prime Minister David Cameron today (13 June) used what appears to be his strongest argument against the procedure to elect the next Commission President, saying that Jean-Claude Juncker, the leading candidate of the largest party following the European elections, was “nowhere on the ballot”.

The European Union's supreme court told Britain on Thursday (18 December) that it could no longer require entry visas in advance for non-EU citizens who are family members of EU citizens, and hold a residence permit from another EU state.

Ireland vowed to be honest broker and do whatever it can to avoid a British exit from EU membership, which is now at the top of the EU political agenda after Prime Minister David Cameron said that Britain must use the upheaval created by the eurozone crisis to forge a new relationship with the European Union.

British Prime Minister David Cameron's hopes of enshrining into law a promise of a referendum on EU membership have collapsed after lawmakers on Tuesday (28 October) said that his Liberal Democrat coalition partners had blocked the legislation.

Britain's Parliament rejected a call for a referendum on leaving the European Union on Monday (24 October), but a large-scale revolt against Prime Minister David Cameron hurt his authority and cast doubt on the country's long-term commitment to Europe.

Comments

With the possible exception of students, who are happy with Zero hours contracts, they need to be made illegal.
I have some knowledge of these through a young relative and also a good friend. There really is no need for these contracts in an advanced economy like the UK. I am no socialist, but this type of contract is just there to suit the employer at the total disadvantage of the employee. They also engender a fear factor that if you do not comply then you will possibly be punished for non compliance later, through lack of work.
We abolished slavery, so how can we in the twenty first century support giving someone (with food and rent to pay) a Zero hour contract, which will not allow them to take employment elsewhere if they are not getting enough hours. The hotel/catering and care industries are particularly bad for this.

Oddly & for once I agree with Mr Mc.
I own part of a company in the UK, we would and have never employ(ed) people on zero hr contracts. I can see that some industries might need some flexibility - the key word is "some" - however, these contacts have now become endemic - time to change but one thing for sure, the current gov has no appetite to do this.

These Zero Hour Contracts are in fact illegal under EU (European Union) Laws already.
The point about them is the fact that they are deemed to be Illegal because there is no contract, and a contract cannot be made to do something which is illegal or a preposterous idea.